Stocks closed mostly flat on Tuesday on brisk trade. The Dow Jones Industrial Average and the Nasdaq closed fractionally higher, while the S&P 500 and S&P MidCap 400 both slid 0.1%. The small-cap Russell 2000 put in the worst performance as it slid 0.5%. The top performing sectors included retail, computer hardware and oil services. Sectors suffering the most damage included banking, coal, steel, transportation, real estate and precious metals.
Last week we discussed the key resistance levels on the Nasdaq and the S&P 500. Since then, not much has changed, but given the price discussion that has been occurring between bulls and bears over the past week, it is probably a good time to once again review the state of the broad market. Below are monthly charts of the Nasdaq and S&P 500. Notice that the S&P is now within about 20 points of resistance at the previous swing high. As we stated last week, we anticipate that the current rally could stall when the S&P overcuts 1,370.
(annotated charts and trade details available only to Wagner Daily subscribers)
Over the past two days, the ProShares Ultra Oil & Gas ETF (DIG) tested support of its 10-day MA, but on both occasions reversed to close near session highs. A breakout above yesterday’s high of $49.62 could provide a buy entry trigger for this ETF.
(annotated charts and trade details available only to Wagner Daily subscribers)
The market came close to putting in a distribution day but a late session rally reversed the day’s fortunes. The fact that the market was able to reverse its trend late in the session, on a high volume day, suggests the bullish conviction in the market is quite high.
The commentary above is an excerpt from our nightly Wagner Daily newsletter. Subscribing members receive annotated ETF and stock charts, detailed entry and exit prices for potential swing trade entries, and additional technical market commentary. Click here to become a member for as low as $58 per month. Your full satisfaction is guaranteed.
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I enjoyed this blog more when a chart was posted. A picture is worth a thousand words. Now it's just boring and harder to follow.
Thanks for your feedback. We are currently trying to figure out the best way to provide quality free content to our blog subscribers, without taking away too much value from our premium members. Previously, we only eliminated the actual details for the trade setups, and now we are testing with the charts. We may revert back to showing charts again. Anyway, we appreciate your input.